EVERTON is in talks with #2bn property giant Peel Holdings to build a new stadium at Switch Island.

The company, one of the biggest developers in the UK, is offering the land it owns at Netherton.

Peel, led by multi-millioniare recluse John Whittaker, will provide a feasibility study into building the ground.

The news is a massive step for the club.

Peel Holdings has a record of pulling off major developments around the country.

It owns Liverpool John Lennon airport, Mersey Docks and Harbour Company, the Manchester Ship Canal and the Trafford Centre.

A senior Everton source said the study is entirely at Peel's expense and would not cost the club a penny.

A City source close to the talks told the ECHO today: "The plan is for Peel to build a new stadium for Everton to gradually acquire it on a lease scheme.

"Over the medium term the plan would be a win-win for both parties."

Everton director Paul Gregg confirmed that talks with Peel have taken place and fully supports the proposals.

"Any opportunity that Everton has for new means to provide a new stadium would be fantastic."

He welcomed Peel's interest: "It is quite obvious the present board does not have the financial resources to support the club's ambitions and maybe they should be looking at new opportunities and new investors."

Everton secretary Keith Wyness revealed two months ago that the club was in talks over a new stadium and that one option was to build it within a three-mile radius of the club's current Goodison Park home.

That would include Switch Island, near Maghull.

Peel issued a statement to the ECHO today, saying: "Following the acquisition of Mersey Docks and Harbour Company, Peel now own a number of sites that have the potential for development in Liverpool and we are exploring future uses of this land with a number of different organisations."

An Everton spokesman added: "We have a number of options still open to us. Since the demise of Kings Dock we have continued to look at a range of options and that will continue."

EVERTON'S search for a new ground began in 1997 when then chairman Peter Johnson polled supporters on a proposed move.

Land at Gillmoss, Kirkby and even Cronton was considered, but the move never transpired.

New chairman Bill Kenwright and shareholder Paul Gregg then proposed a futuristic waterside stadium and conference facility on Kings Dock in a deal with North West Development Agency and construction giant Bovis Lend Lease.

But Everton's inability to raise #30m towards the development meant the dream died in 2003.

A proposal to build a ground on Central Dock was mooted later that year by urban regeneration expert David Taylor, but again it never materialised.

However, Peel's track record in property development represents the club's best opportunity so far.